QIMC. – Quebec Innovative Materials Corp.

Sector: Materials | Industry: Other Industrial Metals & Mining (Natural Hydrogen Exploration)

Exchange: CSE (QIMC) | OTC: QIMCF | FSE: 7FJ

As of: May 29, 2026 | Market: CLOSED (CSE) | Currency: CAD

QIMC is in focus because its May 20, 2026 DDH-26-03 drill result returned a 10.77% H2 mud-gas reading at 848 metres in Nova Scotia, the highest reading on the property, while the stock has pulled back ~74% from its March 2026 all-time high of CA$2.37, creating a re-entry question as holes 4 and 5 at Bennett Hill are scheduled for May-June 2026.

Log

Note: All prices in Canadian Dollars (CAD). The most recent confirmed close is CA$0.60-0.63 per multiple sources as of May 27-28, 2026. StockAnalysis showed a stale March 2026 page (CA$1.25) which was deprioritised. Barchart data timestamped to early March 2026. Current-state figures use TradingView/Stockopedia/Yahoo Finance May 27-28 data.

Current State

• Price (last confirmed close): CA$0.60-0.63 (-4.00% on May 27-28) [STALE]
• All-Time High: CA$2.37 (March 10, 2026) [FRESH]
• Distance from ATH: -74% drawdown from ATH [FRESH]
• Volume: Data unavailable for current session [MISSING]
• Average Volume (20-day): Not captured for CSE listing this session [MISSING]
• 52-Week Range: CA$0.12 – CA$2.37 [FRESH]
• Current position vs 52w low: ~+400% above 52w low; ~74% below 52w high [FRESH]
• Market Cap: CA$80-99M (varies by source/date; ~CA$88M on Yahoo as of May 26) [STALE]
• Shares Outstanding: ~135.45M (post-April bought deal) [FRESH]
• Float: Not separately reported for CSE stock [MISSING]
• SSR Active: Unknown; SSR is a US-market rule, not applicable on CSE [MISSING]

Tape read: The stock has been in a sustained downtrend since ATH of CA$2.37 on March 10, 2026, now sitting ~CA$0.60. That is a brutal 74% drawdown over approximately 11 weeks despite the company releasing its best drill result to date (DDH-26-03 on May 20). The disconnect between a freshly upgraded geological story and a collapsing price is classic post-discovery distribution, compounded by the April 27 bought deal placing 19.2M units at CA$0.90. Buyers from that deal are underwater. Price below the deal price of CA$0.90 is a key structural overhang. No clear bid has emerged yet to absorb the distribution.

Fundamentals

• Revenue (TTM): CA$0 / nil (pre-revenue exploration company) [FRESH]
• Gross Margin: N/A (no revenue) [FRESH]
• Net Loss (TTM): -CA$2.86M [FRESH]
• EPS (TTM, diluted): -CA$0.03 [FRESH]
• Cash (MRQ, pre-deal proceeds): CA$1.57M [FRESH]
• Cash (post CA$17.3M bought deal close Apr 27): ~CA$15.5-16M est (net of underwriter fees ~CA$1.2M) [EST]
• Debt: Nil / not reported [FRESH]
• Net Cash (post-deal est.): ~CA$15.5M [EST]
• Operating Cash Flow (TTM): -CA$833K [FRESH]
• FCF (TTM): -CA$1.10M [FRESH]
• Burn Rate: ~CA$275K/quarter based on TTM FCF; at that rate the fresh CA$15.5M gives 56+ quarters runway — BUT exploration spending will scale materially with the 5-hole drill program [EST]
• P/E: N/A (loss-making) [FRESH]
• P/S: N/A (no revenue) [FRESH]
• P/B: 75x (Yahoo) — meaningless for an exploration company [STALE]

Dilution Watch:

• April 27, 2026: Closed CA$17.3M bought deal — 19,167,050 common shares + 19,167,050 warrants at CA$1.30 exercise, expiry April 27, 2029. Also issued 1,334,694 broker warrants (unit exercise CA$0.90, 36-month term). Share count grew ~16.5% from this single deal.
• CA$1.30 warrant wall: ~19.2M warrants eligible to exercise at CA$1.30 until April 2029. Above that price, management and underwriter will actively push warrant exercises, creating a ceiling effect.
• Earlier financings: Previous rounds (pre-2026) likely created additional warrants at lower strikes. Exact legacy warrant table not captured this session.
• No active ATM program or S-3 equivalent identified on SEDAR this session. Explorers at this stage regularly issue equity — treat any price recovery above CA$1.00 as a financing trigger risk.

Fundamentals read: There are no fundamentals in the traditional sense. QIMC is a CA$80-99M market cap bet on whether its R2G2 exploration model translates into a commercially extractable hydrogen system. The CA$17.3M just raised is adequate for the current 5-hole drill program and then some, so near-term dilution risk is lower than it was pre-April. The real risk is that exploration continues to be expensive and the company has never generated a dollar of revenue. At CA$0.60, you are paying for drill results, not cash flows.

Positioning & Ownership

• Short Interest: Not reported / unavailable for CSE-listed stock [MISSING]
• Borrow Fee: Not available (CSE) [MISSING]
• Institutional Ownership: Not captured; no 13F equivalent for CSE-listed micro-cap [MISSING]
• Insider Ownership: Not quantified this session [MISSING]
• Insider Activity (last 90 days): No open-market buys or sells confirmed via Canadian Insider; CEO John Karagiannidis participated in bought deal at CA$0.90 (inferred from SEDAR filing but not confirmed as insider purchase) [MISSING]
• Shares Outstanding growth: +34.12% YoY (StockAnalysis) — substantial dilution history [FRESH]

Positioning read: Short interest data is unavailable, which is a meaningful gap — CSE micro-caps with explosive moves attract short sellers and this stock ran from CA$0.12 to CA$2.37 in roughly 12 months. The bought deal at CA$0.90 placed significant paper in the hands of deal participants who are now substantially underwater at CA$0.60. That overhang is real and documented. Without SI data, the squeeze risk cannot be quantified. Reduce position sizing accordingly.

Technicals

• SMA200: Price is -6.14% below 200-DMA (Stockopedia, May 28) [STALE]
• SMA50: Not captured cleanly; inferred above current price given downtrend from ATH [MISSING]
• SMA20: Not captured [MISSING]
• RSI (14): 32 at time of Barchart data capture (price was CA$1.44 — STALE); current RSI at CA$0.60 is likely sub-40 given 74% drawdown [STALE]
• ATR: Not captured; beta 2.38-2.90 implies ~5-8% daily range typical [MISSING]
• Beta: 38-2.90 (multiple sources) [FRESH]
• ATH: CA$2.37 (March 10, 2026) [FRESH]
• 52w Low: CA$0.12 [FRESH]
• Barchart Key Resistance: CA$1.33 (1st) / CA$1.23 (2nd) / CA$1.17 (3rd) from Barchart cheat sheet (STALE — reflects Mar 2026 price structure) [STALE]
• Fibonacci 61.8%: CA$0.97 (between 52w low and ATH) [FRESH]
• Fibonacci 50%: CA$0.81 [FRESH]
• Fibonacci 38.2%: CA$0.65 [FRESH]
• Deal price support: CA$0.90 (bought deal price — psychologically important) [FRESH]
• Chart Structure: Downtrend / distribution phase off ATH [FRESH]

Technicals read: The structure is simple and ugly. ATH to current is a 74% drawdown that has accelerated post-bought-deal. The Fibonacci 38.2% retrace of the full 52w move sits at CA$0.65, which is roughly where price is now. That level is where the first real test of buying demand should appear. If it fails, the 50% retrace at CA$0.81 on the way up was a failed test and the next major support is CA$0.20-0.30 (previous accumulation zone before the initial run). Bulls need price to reclaim and hold CA$0.90 (deal price) to stop the bleeding. Bears lose if DDH-26-04 or 26-05 delivers a blockbuster result that forces a re-rating.

Catalyst Map

Macro overlay: No sector-specific Fed or CPI events materially affect a CSE-listed natural hydrogen micro-cap in the next 45 days. Commodity macro (crude, natural gas) is loosely correlated. If natural gas prices remain suppressed, the commercial case for geologic hydrogen gets weaker comparatively. Clean energy policy in Canada (federal hydrogen strategy, provincial support) is a slow-moving tailwind. Watch for any announcements out of Nova Scotia’s CA$30M Hydrogen Innovation Fund.

Catalyst read: The catalyst pipeline is genuinely loaded for the next 6-8 weeks. Holes 4 and 5 at Bennett Hill are the most binary events — they either confirm the 12.5km lateral extent of the hydrogen system (massive positive re-rating) or they come back dry/weak (thesis crack). DDH-26-03 final INRS results are also outstanding. The risk is that the market is in distribution mode and even positive results may be sold into unless they materially exceed the 10.77% H2 reading already in hand. Hole timing aligns with the current technical oversold condition, making it a potential setup — but only if results land.

Flow & Sentiment

• Options Flow: No options market exists for CSE:QIMC [MISSING]
• Put/Call Ratio: N/A — no options [MISSING]
• Dark Pool Prints: Not applicable / not captured [MISSING]
• Retail Sentiment (StockTwits / Reddit): Limited structured data captured; chatter appears bullish on drill results but thin volume of commentary post-ATH collapse [MISSING]
• Sentiment vs. Price: Diverging — geological narrative is bullish, price action is bearish [FRESH]

Flow read: No actionable flow data available. The absence of options removes a key information layer. What can be observed is the price-narrative divergence: the company released its best scientific result (10.77% H2 in DDH-26-03) on May 20 and the stock is still below CA$0.70. That suggests distribution is ongoing, likely from deal participants placed at CA$0.90 and retail buyers from the March run. Smart money signals are unreadable without institutional filings or options flow.

Thesis Stress Test

Bull Case Requires

• DDH-26-04 or DDH-26-05 at Bennett Hill (12.5km step-out) returns percent-level H2 readings, confirming a district-scale hydrogen system rather than a localised anomaly — this would force a structural re-rating of the project.
• Price holds above CA$0.55-0.60 (current lows) and reclaims CA$0.90 on volume following a positive drill result. Without that, you are catching a falling knife.
• Natural hydrogen gains commercial credibility — a farm-in, JV, or M&A approach from a major energy company targeting the Nova Scotia asset would be the ultimate re-rating event.

Bull Case Dies If

• Bennett Hill holes come back dry or with sub-percent H2 readings — this would reveal the West Advocate results as a localised structural anomaly and break the district-scale thesis.
• Another financing is announced above current price levels before drill results land — signals management knows the results are not sufficient to sustain price and needs more cash.

Bear Case Requires

• Continued distribution from deal participants (CA$0.90 cost basis) and retail holders from the March run who have not yet sold. With ~135M shares outstanding and no SI data, the overhang is unquantifiable but visible in the price action.

Bear Case Dies If

• Bennett Hill drill results are materially positive AND volume surges above 3x the 20-day average on the news day — that signals genuine accumulation rather than a dead cat bounce.

Base Case

Over the next 30-90 days, price likely ranges CA$0.45-0.90 while the market waits for Bennett Hill results. The deal overhang suppresses any sustained move above CA$0.90 in the near term. If DDH-26-04/05 are positive, a run back to CA$1.20-1.50 is plausible on momentum — that is the range where the last group of retail buyers were active before the deal. If results disappoint, CA$0.35-0.40 is the next real support (2025 consolidation zone). The base case is sideways-to-weak until a binary catalyst resolves in May-June 2026.

Risk/Reward

At CA$0.60, you are risking roughly CA$0.20-0.25 to the next material support level (~CA$0.35-0.40) to make CA$0.60-0.90 if Bennett Hill results drive a recovery to the CA$1.20-1.50 zone. That is nominally a 2.5-3.5:1 reward/risk on paper. The problem is the denominator is unclear — there is no short interest data, no options flow, no institutional footprint to read, and the stock is in an active downtrend. The catalyst (drill results) has a binary outcome. Size accordingly: this is speculative, event-driven, and illiquid by US standards. The CA$0.90 deal price is the line that separates a recovering thesis from an ongoing unwinding.

Entry & Exit Plan

Sized for a Swing / Event-Driven position (days to weeks around Bennett Hill drill results). Adjust to your own risk tolerance. All prices in CAD.

Equity Plan

Entry sizing note: CSE micro-cap with no short interest data, no options, and an active downtrend. Start at 30-40% of intended position and add only on confirmation (volume surge + price above CA$0.80). If drill results are announced and gap up, do not chase above CA$1.10 without seeing follow-through volume. If volume on any given day is below 50% of 20-day average, halve size. Missing SI data means both squeeze potential and short pressure are unknown — two-way risk.

Options: No options market available for CSE:QIMC or OTCQB:QIMCF. Skip options entirely.

Risk Register

Data Gaps Summary

All [MISSING] tags from this report:

• Current-session volume and 20-day average volume (CSE data not scraped live)
• Short interest % of float and days-to-cover (CSE does not publish short interest in real-time)
• Borrow fee / hard-to-borrow status
• Float (separately reported shares, distinct from shares outstanding)
• SSR active status (US rule, not applicable on CSE)
• SMA20 and SMA50 values (technicals page showed stale March 2026 data)
• ATR (14) — not captured from current data
• Current RSI (14) at current price of CA$0.60 (stale RSI of 79.32 was at CA$1.44 in March)
• Institutional ownership % and 13F/13G equivalents
• Insider ownership % and recent open-market transaction details from SEDAR
• Legacy warrant table (pre-April 2026 warrants at various strike prices)
• Options surface — does not exist for this listing
• Analyst ratings and price targets — zero analyst coverage found
• Quantified social sentiment (StockTwits volume, Reddit mention count)
• Dark pool prints
• Earnings date confirmed (reported as May 29, 2026 by one source but not confirmed)

Not financial advice. DYOR. All data sourced via API connection. CSE prices in CAD unless noted. Timestamp: May 29, 2026 ET | Market: CLOSED (CSE hours)